AIM-listed Franchise Brands has declared its intention to continue buying back shares over the coming six months following a strong year of trading.
The Macclesfield-based company said it would purchase up to £210,000 more of its ordinary shares at 0.5p each through its Employee Benefit Trust after already acquiring nearly 250,000 in the last half of this year.
It comes a month after the firm bought franchise management software system developer Azura Group and posted record earnings for the first nine months of 2021 in its third-quarter results.
This was largely on the back of record system sales by franchisees at its commercial drainage business Metro Rod, which surged by 32 per cent on the same time last year.
Thanks to this impressive performance, bosses at the group said they were confident of hitting market expectations this year, forecasting turnover of £100million and adjusted underlying earnings of £15million by the end of 2023.
For the first six months of 2021, the business also registered an 18 per cent rise in revenues and a 200 per cent increase in pre-tax profits of £2.6million.
Franchise Brands, which has over 400 franchisees across its network of companies, has performed very strongly during the coronavirus pandemic, although it admitted to a weakening of trade at the beginning of the global health crisis.
Alongside Metro Rod, it has six other leading brands as part of its portfolio that are divided between business-to-business and business-to-consumer divisions.
Related: Metro Rod Franchise
Its B2B arm has Metro Rod, national plumbing franchise Metro Plumb and pump supply, installation and maintenance business Willow Pump, while its B2C arm includes Ovenclean, mobile car paintwork repair specialist ChipsAway and dog home boarding services Barking Mad.
Shares in the business were up 2.7 per cent to 151.5p during the late morning on Friday, meaning their value has increased by about half in 2021.
By HARRY WISE
Source: This is Money